Refer to the graph below, which shows the demand and supply of tickets for a Broadway play. When the play's producers take fairness into account, which of the following would most likely to occur?
a. The market price will equal the equilibrium of $125.
b. Producers will charge $75 for a ticket even though the result would be a shortage.
c. Producers will charge $145 for a ticket in anticipation of stronger demand.
d. Producers will raise ticker prices gradually as demand strengthens over time.
b. Producers will charge $75 for a ticket even though the result would be a shortage.
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Under perfect competition and monopolistic competition, profits are zero in long-run equilibrium.
Answer the following statement true (T) or false (F)
When a nation first begins to trade with other countries and the nation becomes an importer of corn,
a. this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade. b. this is an indication that the nation has a comparative advantage in producing corn. c. the nation's consumers of corn become better off and the nation's producers of corn become worse off. d. All of the above are correct.
These are the cost and revenue curves associated with a firm.
If the firm in the given graph were to produce Q2 and charge P2, then:
A. economic profit would be negative. B. profits would be maximized. C. producer surplus would be zero. D. deadweight loss would be positive.
If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:
A. 4. B. 3½. C. 10. D. 5.